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statewide election ballot, the provisions of the other families who cannot afford a vehicle, and providing measure or measures shall be deemed to be in confict new affordable and convenient delivery options for with this act. If this act receives a greater number of grocery stores, restaurants, retailers, and other local affrmative votes than another measure deemed to be businesses and their patrons. in confict with it, the provisions of this act shall (d) However, recent legislation has threatened to take prevail in their entirety, and the other measure or away the fexible work opportunities of hundreds of measures shall be null and void. thousands of Californians, potentially forcing them into set shifts and mandatory hours, taking away their PROPOSITION 22 ability to make their own decisions about the jobs they take and the hours they work. This initiative measure is submitted to the people in accordance with the provisions of Section 8 of Article (e) Protecting the ability of Californians to work as II of the California Constitution. independent contractors throughout the state using app-based rideshare and delivery platforms is This initiative measure adds sections to the Business necessary so people can continue to choose which and Professions Code and amends a section of the jobs they take, to work as often or as little as they like, Revenue and Taxation Code; therefore, new provisions proposed to be added are printed in italic type to and to work with multiple platforms or companies, all indicate that they are new. the while preserving access to app-based rideshare and delivery services that are benefcial to consumers, PROPOSED LAW small businesses, and the California economy. (f) App-based rideshare and delivery drivers deserve SECTION 1. Chapter 10.5 (commencing with economic security. This chapter is necessary to protect Section 7448) is added to Division 3 of the Business their freedom to work independently, while also and Professions Code, to read: providing these workers new benefts and protections CHAPTER 10.5. APP-BASED DRIVERS AND SERVICES not available under current law. These benefts and Article 1. Title, Findings and Declarations, and protections include a healthcare subsidy consistent Statement of Purpose with the average contributions required under the Affordable Care Act (ACA); a new minimum earnings 7448. Title. This chapter shall be known, and may guarantee tied to 120 percent of minimum wage with be cited, as the Protect App-Based Drivers and no maximum; compensation for vehicle expenses; Services Act. occupational accident insurance to cover on-the-job 7449. Findings and Declarations. The people of the injuries; and protection against discrimination and State of California fnd and declare as follows: sexual harassment. (a) Hundreds of thousands of Californians are (g) California law and rideshare and delivery network choosing to work as independent contractors in the companies should protect the safety of both drivers modern economy using app-based rideshare and and consumers without affecting the right of app- 21 delivery platforms to transport passengers and deliver based rideshare and delivery drivers to work as food, groceries, and other goods as a means of earning independent contractors. Such protections should, at income while maintaining the fexibility to decide a minimum, include criminal background checks of when, where, and how they work. drivers; zero tolerance policies for drug- and alcohol- 22 (b) These app-based rideshare and delivery drivers related offenses; and driver safety training. include parents who want to work fexible schedules 7450. Statement of Purpose. The purposes of this while children are in school; students who want to chapter are as follows: earn money in between classes; retirees who rideshare (a) To protect the basic legal right of Californians to or deliver a few hours a week to supplement fxed choose to work as independent contractors with incomes and for social interaction; military spouses rideshare and delivery network companies throughout and partners who frequently relocate; and families the state. struggling with California’s high cost of living that need to earn extra income. (b) To protect the individual right of every app-based rideshare and delivery driver to have the fexibility to (c) Millions of California consumers and businesses, set their own hours for when, where, and how they and our state’s economy as a whole, also beneft from work. the services of people who work as independent contractors using app-based rideshare and delivery (c) To require rideshare and delivery network platforms. App-based rideshare and delivery drivers companies to offer new protections and benefts for are providing convenient and affordable transportation app-based rideshare and delivery drivers, including for the public, reducing impaired and drunk driving, minimum compensation levels, insurance to cover on- improving mobility for seniors and individuals with the-job injuries, automobile accident insurance, disabilities, providing new transportation options for health care subsidies for qualifying drivers, protection 30 | Text of Proposed Laws TEXT OF PROPOSED LAWS PROPOSITION 22 CONTINUED against harassment and discrimination, and 7453. Earnings Guarantee. (a) A network company mandatory contractual rights and appeal processes. shall ensure that for each earnings period, an app- (d) To improve public safety by requiring criminal based driver is compensated at not less than the net background checks, driver safety training, and other earnings foor as set forth in this section. The net safety provisions to help ensure app-based rideshare earnings foor establishes a guaranteed minimum level and delivery drivers do not pose a threat to customers of compensation for app-based drivers that cannot be or the public. reduced. In no way does the net earnings foor prohibit app-bas ed drivers from earning a higher level of Article 2. App-Based Driver Independence compensation. 7451. Protecting Independence. Notwithstanding (b) For each earnings period, a network company shall any other provision of law, including, but not limited to, the Labor Code, the Unemployment Insurance compare an app-based driver’s net earnings against Code, and any orders, regulations, or opinions of the the net earnings foor for that app-based driver during Department of Industrial Relations or any board, the earnings period. In the event that the app-based division, or commission within the Department of driver’s net earnings in the earnings period are less Industrial Relations, an app-based driver is an than the net earnings foor for that earnings period, independent contractor and not an employee or agent the network company shall include an additional sum with respect to the app-based driver’s relationship accounting for the difference in the app-based driver’s with a network company if the following conditions are earnings no later than during the next earnings period. met: (c) No network company or agent shall take, receive, (a) The network company does not unilaterally or retain any gratuity or a part thereof that is paid, prescribe specifc dates, times of day, or a minimum given to, or left for an app-based driver by a customer number of hours during which the app-based driver or deduct any amount from the earnings due to an must be logged into the network company’s online- app-based driver for a ride or delivery on account of a enabled application or platform. gratuity paid in connection with the ride or delivery. A (b) The network company does not require the app- network company that permits customers to pay based driver to accept any specifc rideshare service gratuities by credit card shall pay the app-based driver or delivery service request as a condition of the full amount of the gratuity that the customer maintaining access to the network company’s online- indicated on the credit card receipt, without any enabled application or platform. deductions for any credit card payment processing fees or costs that may be charged to the network (c) The network company does not restrict the app- company by the credit card company. based driver from performing rideshare services or delivery services through other network companies (d) For purposes of this chapter, the following except during engaged time. defnitions apply: (d) The network company does not restrict the app- (1) “Applicable minimum wage” means the state based driver from working in any other lawful mandated minimum wage for all industries or, if a occupation or business. passenger or item is picked up within the boundaries of a local government that has a higher minimum 7452. Contract and Termination Provisions. (a) A network company and an app-based driver shall enter wage that is generally applicable to all industries, the local minimum wage of that local government. The into a written agreement prior to the driver receiving 22 access to the network company’s online-enabled applicable minimum wage shall be determined at the application or platform. location where a passenger or item is picked up and shall apply for all engaged time spent completing that (b) A network company shall not terminate a contract rideshare request or delivery request. with an app-based driver unless based upon a ground specifed in the contract. (2) “Earnings period” means a pay period, set by the network company, not to exceed 14 consecutive (c) Network companies shall provide an appeals calendar days. process for app-based drivers whose contracts are terminated by the network company. (3) “Net earnings” means all earnings received by an app-based driver in an earnings period, provided that 7452.5. Independence Unaffected. Nothing in the amount conforms to both of the following Article 3 (commencing with Section 7453) to Article standards: 11 (commencing with Section 7467), inclusive, of this chapter shall be interpreted to in any way alter (A) The amount does not include gratuities, tolls, the relationship between a network company and an cleaning fees, airport fees, or other customer pass- app-based driver for whom the conditions set forth in throughs. Section 7451 are satisfed. (B) The amount may include incentives or other Article 3. Compensation bonuses. Text of Proposed Laws | 31 TEXT OF PROPOSED LAWS PROPOSITION 22 CONTINUED

(4) “Net earnings foor” means, for any earnings (b) At the end of each earnings period, a network period, a total amount that is comprised of: company shall provide to each app-based driver the following information: (A) For all engaged time, the sum of 120 percent of the applicable minimum wage for that engaged time. (1) The number of hours of engaged time the app- based driver accrued on the network company’s (B) (i) The per-mile compensation for vehicle online-enabled application or platform during that expenses set forth in this subparagraph multiplied by earnings period. the total number of engaged miles. (2) The number of hours of engaged time the app- (ii) After the effective date of this chapter and for the based driver has accrued on the network company’s 2021 calendar year, the per-mile compensation for online-enabled application or platform during the vehicle expenses shall be thirty cents ($0.30) per current calendar quarter up to that point. engaged mile. For calendar years after 2021, the (c) Covered California may adopt or amend regulations amount per engaged mile shall be adjusted pursuant as it deems appropriate to permit app-based drivers to clause (iii). receiving subsidies pursuant to this section to enroll (iii) For calendar years following 2021, the per-mile in health plans through Covered California. compensation for vehicle expenses described in (d) (1) As a condition of providing the health care clause (ii) shall be adjusted annually to refect any subsidy set forth in subdivision (a), a network increase in infation as measured by the Consumer company may require an app-based driver to submit Price Index for All Urban Consumers (CPI-U) proof of current enrollment in a qualifying health plan. published by the United States Bureau of Labor Proof of current enrollment may include, but is not Statistics. The Treasurer’s Offce shall calculate and limited to, health insurance membership or publish the adjustments required by this identifcation cards, evidence of coverage and subparagraph. disclosure forms from the health plan, or claim forms and other documents necessary to submit claims. (e) Nothing in this section shall be interpreted to require a network company to provide a particular (2) An app-based driver shall have not less than 15 amount of compensation to an app-based driver for calendar days from the end of the calendar quarter to any given rideshare or delivery request, as long as the provide proof of enrollment as set forth in paragraph app-based driver’s net earnings for each earnings (1). period equals or exceeds that app-based driver’s net (3) A network company shall provide a health care earnings foor for that earnings period as set forth in subsidy due for a calendar quarter under subdivision subdivision (b). For clarity, the net earnings foor in (a) within 15 days of the end of the calendar quarter this section may be calculated on an average basis or within 15 days of the app-based driver’s submission over the course of each earnings period. of proof of enrollment as set forth in paragraph (1), whichever is later. Article 4. Benefts (e) For purposes of this section, a calendar quarter 7454. Healthcare Subsidy. (a) Consistent with the refers to the following four periods of time: average contributions required under the Affordable (1) January 1 through March 31. Care Act (ACA), a network company shall provide a quarterly health care subsidy to qualifying app-based (2) April 1 through June 30. 22 drivers as set forth in this section. An app-based driver (3) July 1 through September 30. that averages the following amounts of engaged time (4) October 1 through December 31. per week on a network company’s platform during a calendar quarter shall receive the following subsidies (f) Nothing in this section shall be interpreted to from that network company: prevent an app-based driver from receiving a health care subsidy from more than one network company for (1) For an average of 25 hours or more per week of the same calendar quarter. engaged time in the calendar quarter, a payment (g) On or before December 31, 2020, and on or greater than or equal to 100 percent of the average before each September 1 thereafter, Covered ACA contribution for the applicable average monthly California shall publish the average statewide monthly Covered California premium for each month in the premium for an individual for the following calendar quarter. year for a Covered California bronze health insurance (2) For an average of at least 15 but less than 25 plan. hours per week of engaged time in the calendar (h) This section shall become inoperative in the event quarter, a payment greater than or equal to 50 percent the United States or the State of California of the average ACA contribution for the applicable implements a universal health care system or average monthly Covered California premium for each substantially similar system that expands coverage to month in the quarter. the recipients of subsidies under this section. 32 | Text of Proposed Laws TEXT OF PROPOSED LAWS PROPOSITION 22 CONTINUED

7455. Loss and Liability Protection. No network compensation law or disability beneft for the purpose company shall operate in California for more than 90 of determining amounts payable under any insurance days unless the network company carries, provides, or provided under Article 2 (commencing with Section otherwise makes available the following insurance 11580) of Chapter 1 of Part 3 of Division 2 of the coverage: Insurance Code. (a) For the beneft of app-based drivers, occupational (f) (1) For the beneft of the public, a DNC as defned accident insurance to cover medical expenses and lost in Section 7463 shall maintain automobile liability income resulting from injuries suffered while the app- insurance of at least one million dollars ($1,000,000) based driver is online with a network company’s per occurrence to compensate third parties for injuries online-enabled application or platform. Policies shall or losses proximately caused by the operation of an at a minimum provide the following: automobile by an app-based driver during engaged (1) Coverage for medical expenses incurred, up to at time in instances where the automobile is not least one million dollars ($1,000,000). otherwise covered by a policy that complies with subdivision (b) of Section 11580.1 of the Insurance (2) (A) Disability payments equal to 66 percent of Code. the app-based driver’s average weekly earnings from all network companies as of the date of injury, with (2) For the beneft of the public, a TNC as defned in minimum and maximum weekly payment rates to be Section 7463 shall maintain liability insurance determined in accordance with subdivision (a) of policies as required by Article 7 (commencing with Section 4453 of the Labor Code for up to the frst Section 5430) of Chapter 8 of Division 2 of the Public 104 weeks following the injury. Utilities Code. (B) “Average weekly earnings” means the app-based (3) For the beneft of the public, a TCP as defned in driver’s total earnings from all network companies Section 7463 shall maintain liability insurance during the 28 days prior to the covered accident policies as required by Article 4 (commencing with divided by four. Section 5391) of Chapter 8 of Division 2 of the Public Utilities Code. (b) For the beneft of spouses, children, or other dependents of app-based drivers, accidental death Article 5. Antidiscrimination insurance for injuries suffered by an app-based driver and Public Safety while the app-based driver is online with the network 7456. Antidiscrimination. (a) It is an unlawful company’s online-enabled application or platform that practice, unless based upon a bona fde occupational result in death. For purposes of this subdivision, qualifcation or public or app-based driver safety need, burial expenses and death benefts shall be for a network company to refuse to contract with, determined in accordance with Section 4701 and terminate the contract of, or deactivate from the Section 4702 of the Labor Code. network company’s online-enabled application or (c) For the purposes of this section, “online” means platform, any app-based driver or prospective app- the time when an app-based driver is utilizing a based driver based upon race, color, ancestry, national network company’s online-enabled application or origin, religion, creed, age, physical or mental platform and can receive requests for rideshare disability, sex, gender, sexual orientation, gender services or delivery services from the network identity or expression, medical condition, genetic company, or during engaged time. information, marital status, or military or veteran status. (d) Occupational accident insurance or accidental 22 death insurance under subdivisions (a) and (b) shall (b) Claims brought pursuant to this section shall be not be required to cover an accident that occurs while brought solely under the procedures established by online but outside of engaged time where the injured the Unruh Civil Rights Act (Section 51 of the Civil app-based driver is in engaged time on one or more Code) and will be governed by its requirements and other network company platforms or where the remedies. app-based driver is engaged in personal activities. If 7457. Sexual Harassment Prevention. (a) A an accident is covered by occupational accident network company shall develop a sexual harassment insurance or accidental death insurance maintained policy intended to protect app-based drivers and by more than one network company, the insurer of the members of the public using rideshare services or network company against whom a claim is fled is delivery services. The policy shall be available on the entitled to contribution for the pro-rata share of network company’s internet website. The policy shall, coverage attributable to one or more other network at a minimum, do all of the following: companies up to the coverages and limits in (1) Identify behaviors that may constitute sexual subdivisions (a) and (b). harassment, including the following: unwanted sexual (e) Any benefts provided to an app-based driver advances; leering, gestures, or displaying sexually under subdivision (a) or (b) of this section shall be suggestive objects, pictures, cartoons, or posters; considered amounts payable under a worker’s derogatory comments, epithets, slurs, or jokes; Text of Proposed Laws | 33 TEXT OF PROPOSED LAWS PROPOSITION 22 CONTINUED

graphic comments, sexually degrading words, or monitoring of that app-based driver’s criminal history suggestive or obscene messages or invitations; and if the network company elects to undertake such physical touching or assault, as well as impeding or continual monitoring. blocking movements. (b) A network company shall complete the initial (2) Indicate that the network company, and in many criminal background check as required by subdivision instances the law, prohibits app-based drivers and (a) prior to permitting an app-based driver to utilize customers utilizing rideshare services or delivery the network company’s online-enabled application or services from committing prohibited harassment. platform. The network company shall provide physical (3) Establish a process for app-based drivers, or electronic copies or summaries of the initial customers, and rideshare passengers to submit criminal background check to the app-based driver. complaints that ensures confdentiality to the extent (c) An app-based driver shall not be permitted to possible; an impartial and timely investigation; and utilize a network company’s online-enabled remedial actions and resolutions based on the application or platform if one of the following applies: information collected during the investigation process. (1) The driver has ever been convicted of any crime (4) Provide an opportunity for app-based drivers and listed in subparagraph (B) of paragraph (2) of customers utilizing rideshare services or delivery subdivision (a) of Section 5445.2 of the Public services to submit complaints electronically so Utilities Code, any serious felony as defned by complaints can be resolved quickly. subdivision (c) of Section 1192.7 of the Penal Code, (5) Indicate that when the network company receives or any hate crime as defned by Section 422.55 of the allegations of misconduct, it will conduct a fair, Penal Code. timely, and thorough investigation to reach reasonable (2) The driver has been convicted within the last conclusions based on the information collected. seven years of any crime listed in paragraph (3) of (6) Make clear that neither app-based drivers nor subdivision (a) of Section 5445.2 of the Public customers utilizing rideshare services or delivery Utilities Code. services shall be retaliated against as a result of (d) (1) The ability of an app-based driver to utilize a making a good faith complaint or participating in an network company’s online-enabled application or investigation against another app-based driver, platform may be suspended if the network company customer, or rideshare passenger. learns the driver has been arrested for any crime listed (b) Prior to providing rideshare services or delivery in either of the following: services through a network company’s online-enabled (A) Subparagraph (B) of paragraph (2), or paragraph application or platform, an app-based driver shall do (3), of subdivision (a) of Section 5445.2 of the Public both of the following: Utilities Code. (1) Review the network company’s sexual harassment policy. (B) Subdivision (c) of this section. (2) Confrm to the network company, for which (2) The suspension described in paragraph (1) may electronic confrmation shall suffce, that the app- be lifted upon the disposition of an arrest for any based driver has reviewed the network company’s crime listed in subparagraph (B) of paragraph (2), or sexual harassment policy. paragraph (3), of subdivision (a) of Section 5445.2 of the Public Utilities Code that does not result in a 22 (c) Claims brought pursuant to this section shall be conviction. Such disposition includes a fnding of brought solely under the procedures established by factual innocence from any relevant charge, an the Unruh Civil Rights Act (Section 51 of the Civil acquittal at trial, an affdavit indicating the Code) and will be governed by its requirements and prosecuting attorney with jurisdiction over the alleged remedies. offense has declined to fle a criminal complaint, or 7458. Criminal Background Checks. (a) A network an affdavit indicating all relevant time periods company shall conduct, or have a third party conduct, described in Chapter 2 (commencing with Section an initial local and national criminal background 799) of Title 3 of Part 2 of the Penal Code have check for each app-based driver who uses the network expired. company’s online-enabled application or platform to (e) Nothing in this section shall be interpreted to provide rideshare services or delivery services. The prevent a network company from imposing additional background check shall be consistent with the standards relating to criminal history. standards contained in subdivision (a) of Section 5445.2 of the Public Utilities Code. Notwithstanding (f) Notwithstanding Section 1786.12 of the Civil any other provision of law to the contrary, after an Code, an investigative consumer reporting agency may app-based driver’s consent is obtained by a network furnish an investigative consumer report to a network company for an initial background check, no company about a person seeking to become an app- additional consent shall be required for the continual based driver, regardless of whether the app-based 34 | Text of Proposed Laws TEXT OF PROPOSED LAWS PROPOSITION 22 CONTINUED driver is to be an employee or an independent (c) A network company may suspend access to the contractor of the network company. network company’s online-enabled application or 7459. Safety Training. (a) A network company shall platform for any app-based driver or customer found require an app-based driver to complete the training to be reporting an alleged violation of a zero tolerance described in this section prior to allowing the app- policy as described in subdivision (a) where that driver based driver to utilize the network company’s online- or customer knows the report to be unfounded or enabled application or platform. based the report on an intent to inappropriately deny a driver access to the online-enabled application or (b) A network company shall provide each app-based platform. driver safety training. The safety training required by this section shall include the following subjects: 7460.5. A network company shall make continuously and exclusively available to law (1) Collision avoidance and defensive driving enforcement a mechanism to submit requests for techniques. information to aid in investigations related to (2) Identifcation of collision-causing elements such emergency situations, exigent circumstances, and as excessive speed, DUI, and distracted driving. critical incidents. (3) Recognition and reporting of sexual assault and 7461. App-based Driver Rest. An app-based driver misconduct. shall not be logged in and driving on a network (4) For app-based drivers delivering prepared food or company’s online-enabled application or platform for groceries, food safety information relevant to the more than a cumulative total of 12 hours in any 24- delivery of food, including temperature control. hour period, unless that driver has already logged off for an uninterrupted period of 6 hours. If an app- (c) The training may, at the discretion of the network based driver has been logged on and driving for more company, be provided via online, video, or in-person than a cumulative total of 12 hours in any 24-hour training. period, without logging off for an uninterrupted period (d) Notwithstanding subdivision (a), any app-based of 6 hours, the driver shall be prohibited from logging driver that has entered into a contract with a network back into the network company’s online-enabled company prior to January 1, 2021, to provide application or platform for an uninterrupted period of rideshare services or delivery services shall have until at least 6 hours. July 1, 2021, to complete the safety training required by this section, and may continue to provide rideshare 7462. Impersonating an App-Based Driver. (a) Any services or delivery services through the network person who fraudulently impersonates an app-based company’s online-enabled application or platform driver while providing or attempting to provide until that date. On and after July 1, 2021, app-based rideshare or delivery services shall be guilty of a drivers described in this subdivision must complete misdemeanor, and is punishable by imprisonment in a the training required by this section in order to county jail for up to six months, or a fne of up to ten continue providing rideshare services and delivery thousand dollars ($10,000), or both. Nothing in this services. subdivision precludes prosecution under any other law. (e) Any safety product, feature, process, policy, standard, or other effort undertaken by a network (b) In addition to any other penalty provided by law, company, or the provision of equipment by a network any person who fraudulently impersonates an app- company, to further public safety is not an indicia of based driver while providing or attempting to provide 22 an employment or agency relationship with an app- rideshare services or delivery services in the based driver. commission or attempted commission of an offense described in Section 207, 209, 220, 261, 264.1, 7460. Zero Tolerance Policies. (a) A network 286, 287, 288, or 289 of the Penal Code shall be company shall institute a “zero tolerance policy” that sentenced to an additional term of fve years. mandates prompt suspension of an app-based driver’s access to the network company’s online-enabled (c) In addition to any other penalty provided by law, application or platform in any instance in which the any person who fraudulently impersonates an app- network company receives a report through its online- based driver while providing or attempting to provide enabled application or platform, or by any other rideshare services or delivery services in the company-approved method, from any person who commission of a felony or attempted felony and in so reasonably suspects the app-based driver is under the doing personally inficts great bodily injury to another infuence of drugs or alcohol while providing rideshare person other than an accomplice shall be sentenced services or delivery services. to an additional term of fve years. (b) Upon receiving a report described in subdivision (d) In addition to any other penalty provided by law, (a), a network company shall promptly suspend the any person who fraudulently impersonates an app- app-based driver from the company’s online-enabled based driver while providing or attempting to provide application or platform for further investigation. rideshare services or delivery services in the Text of Proposed Laws | 35 TEXT OF PROPOSED LAWS PROPOSITION 22 CONTINUED

commission of a felony or attempted felony and in so (i) “Engaged miles” means all miles driven during doing causes the death of another person other than engaged time in a passenger vehicle that is not owned, an accomplice shall be sentenced to an additional leased, or rented by the network company. term of 10 years. (j) (1) “Engaged time” means, subject to the Article 6. Defnitions conditions set forth in paragraph (2), the period of 7463. For purposes of this chapter, the following time, as recorded in a network company’s online- defnitions shall apply: enabled application or platform, from when an app- based driver accepts a rideshare request or delivery (a) “App-based driver” means an individual who is a request to when the app-based driver completes that DNC courier, TNC driver, or TCP driver or permit rideshare request or delivery request. holder; and for whom the conditions set forth in subdivisions (a) to (d), inclusive, of Section 7451 are (2) (A) Engaged time shall not include the following: satisfed. (i) Any time spent performing a rideshare service or (b) “Average ACA contribution” means 82 percent of delivery service after the request has been cancelled the dollar amount of the average monthly Covered by the customer. California premium. (ii) Any time spent on a rideshare service or delivery (c) “Average monthly Covered California premium” service where the app-based driver abandons equals the dollar amount published pursuant to performance of the service prior to completion. subdivision (g) of Section 7454. (B) Network companies may also exclude time if (d) “Covered California” means the California Health doing so is reasonably necessary to remedy or prevent Beneft Exchange, codifed in Title 22 (commencing fraudulent use of the network company’s online- with Section 100500) of the Government Code. enabled application or platform. (e) “Customer” means one or more natural persons or (k) “Local government” means a city, county, city and business entities. county, charter city, or charter county. (f) “Delivery network company” (DNC) means a (l) “Network company” means a business entity that business entity that maintains an online-enabled is a DNC or a TNC. application or platform used to facilitate delivery services within the State of California on an on- (m) “Passenger vehicle” means a passenger vehicle demand basis, and maintains a record of the amount as defned in Section 465 of the Vehicle Code. of engaged time and engaged miles accumulated by (n) “Qualifying health plan” means a health insurance DNC couriers. Deliveries are facilitated on an on- plan in which the app-based driver is the subscriber, demand basis if DNC couriers are provided with the that is not sponsored by an employer, and that is not a option to accept or decline each delivery request and Medicare or Medicaid plan. the DNC does not require the DNC courier to accept (o) “Rideshare service” means the transportation of any specifc delivery request as a condition of one or more persons. maintaining access to the DNC’s online-enabled application or platform. (p) “Transportation network company” (TNC) has the same meaning as the defnition contained in (g) “Delivery network company courier” (DNC courier) subdivision (c) of Section 5431 of the Public Utilities means an individual who provides delivery services Code. 22 through a DNC’s online-enabled application or platform. (q) “Transportation network company driver” (TNC (h) “Delivery services” means the fulfllment of driver) has the same meaning as the defnition of delivery requests, meaning the pickup from any driver contained in subdivision (a) of Section 5431 of location of any item or items and the delivery of the the Public Utilities Code. items using a passenger vehicle, bicycle, scooter, (r) “Charter-party carrier of passengers” (TCP) shall walking, public transportation, or other similar means have the same meaning as the defnition contained in of transportation, to a location selected by the Section 5360 of the Public Utilities Code, provided customer located within 50 miles of the pickup the driver is providing rideshare services using a location. A delivery request may include more than passenger vehicle through a network company’s one, but not more than 12, distinct orders placed by online-enabled application or platform. different customers. Delivery services may include the Article 7. Uniform Work Standards selection, collection, or purchase of items by a DNC courier provided that those tasks are done in 7464. (a) The performance of a single rideshare connection with a delivery that the DNC courier has service or delivery service frequently requires an app- agreed to deliver. Delivery services do not include based driver to travel across the jurisdictional deliveries that are subject to Section 26090, as that boundaries of multiple local governments. California section read on October 29, 2019. has over 500 cities and counties, which can lead to 36 | Text of Proposed Laws TEXT OF PROPOSED LAWS PROPOSITION 22 CONTINUED overlapping, inconsistent, and contradictory local (1) “Participating payee” has the same meaning as regulations for cross-jurisdictional services. provided in Section 6050W(d)(1)(A)(ii) of Title 26 of the United States Code. (b) In light of the cross-jurisdictional nature of the rideshare services and delivery services, and in (2) “Reportable payment transaction” has the same addition to the other requirements and standards meaning as provided in Section 6050W(c)(1) of Title established by this chapter, the state hereby occupies 26 of the United States Code. the feld in the following areas: (3) “Third-party settlement organization” has the (1) App-based driver compensation and gratuity, same meaning as provided in Section 6050W(b)(3) of except as provided in Section 7453. Title 26 of the United States Code. (2) App-based driver scheduling, leave, health care (e) This section shall not apply in instances where the gross amount of reportable payment transactions for a subsidies, and any other work-related stipends, participating payee in a calendar year is less than six subsidies, or benefts. hundred dollars ($600) or where the participating (3) App-based driver licensing and insurance payee is not an app-based driver. requirements. (f) This section shall apply to reportable payment (4) App-based driver rights with respect to a network transactions occurring on or after January 1, 2021. company’s termination of an app-based driver’s Article 9. Amendment contract. 7465. (a) After the effective date of this chapter, (c) Notwithstanding subdivision (b), nothing in this the Legislature may amend this chapter by a statute section shall limit a local government’s ability to adopt passed in each house of the Legislature by rollcall local ordinances necessary to punish the commission vote entered into the journal, seven-eighths of the of misdemeanor and felony crimes or to enforce local membership concurring, provided that the statute is ordinances and regulations enacted prior to October consistent with, and furthers the purpose of, this 29, 2019. chapter. No bill seeking to amend this chapter after Article 8. Income Reporting the effective date of this chapter may be passed or ultimately become a statute unless the bill has been 7464.5 (a) A network company that is acting as a printed and distributed to members, and published on third-party settlement organization shall prepare an the internet, in its fnal form, for at least 12 business information return for each participating payee who is days prior to its passage in either house of the an app-based driver with a California address that has Legislature. a gross amount of reportable payment transactions (b) No statute enacted after October 29, 2019, but equal to or greater than six hundred dollars ($600) prior to the effective date of this chapter, that would during a calendar year, irrespective of the number of constitute an amendment of this chapter, shall be transactions between the third-party settlement operative after the effective date of this chapter unless organization and the payee. A third-party settlement the statute was passed in accordance with the organization must report these amounts to the requirements of subdivision (a). Franchise Tax Board and furnish a copy to the payee, (c) (1) The purposes of this chapter are described in even if it does not have a federal reporting obligation. Article 1 (commencing with Section 7448). The information return shall identify the following: (2) Any statute that amends Section 7451 does not (1) The name, address, and tax identifcation number further the purposes of this chapter. 22 of the participating payee. (3) Any statute that prohibits app-based drivers from (2) The gross amount of the reportable payment performing a particular rideshare service or delivery transactions with respect to the participating payee. service while allowing other individuals or entities to (b) Within 30 days following the date such an perform the same rideshare service or delivery service, information return would be due to the Internal or otherwise imposes unequal regulatory burdens upon Revenue Service, a network company shall fle a copy app-based drivers based on their classifcation status, of any information return required by subdivision (a) constitutes an amendment of this chapter and must with the Franchise Tax Board and shall provide a copy be enacted in compliance with the procedures to the participating payee. governing amendments consistent with the purposes of this chapter as set forth in subdivisions (a) and (b). (c) A network company may fulfll this requirement by (4) Any statute that authorizes any entity or submitting a copy of Internal Revenue Service Form organization to represent the interests of app-based 1099-K or by submitting a form provided by the drivers in connection with drivers’ contractual Franchise Tax Board that includes the same relationships with network companies, or drivers’ information as that on Cal-1099-K. compensation, benefts, or working conditions, (d) For purposes of this section: constitutes an amendment of this chapter and must Text of Proposed Laws | 37 TEXT OF PROPOSED LAWS PROPOSITION 22 CONTINUED

be enacted in compliance with the procedures 17037. Provisions in other codes or general law governing amendments consistent with the purposes statutes which are related to this part include all of of this chapter as set forth in subdivisions (a) and (b). the following: (d) Any statute that imposes additional misdemeanor (a) Chapter 20.6 (commencing with Section 9891) of or felony penalties in order to provide greater Division 3 of the Business and Professions Code, protection against criminal activity for app-based relating to tax preparers. drivers and individuals using rideshare services or (b) Part 10.2 (commencing with Section 18401), delivery services may be enacted by the Legislature by relating to the administration of franchise and income rollcall vote entered into the journal, a majority of the tax laws. membership of each house concurring, without (c) Part 10.5 (commencing with Section 20501), complying with subdivisions (a) and (b). relating to the Property Tax Assistance and Article 10. Regulations Postponement Law. 7466. (a) Emergency regulations may be adopted (d) Part 10.7 (commencing with Section 21001), by Covered California in order to implement and relating to the Taxpayers’ Bill of Rights. administer subdivisions (c) and (g) of Section 7454. (e) Part 11 (commencing with Section 23001), (b) Any emergency regulation adopted pursuant to relating to the Corporation Tax Law. this section shall be adopted in accordance with (f) Sections 15700 to 15702.1, inclusive, of the Chapter 3.5 (commencing with Section 11340) of Government Code, relating to the Franchise Tax Board. Part 1 of Division 3 of Title 2 of the Government Code, (g) Article 8 (commencing with Section 7464.5) of and, for purposes of that chapter, including Section Chapter 10.5 of Division 3 of the Business and 11349.6 of the Government Code, the adoption of the Professions Code. regulation is an emergency and shall be considered by the Offce of Administrative Law as necessary for the SEC. 3. Conficting Measures. immediate preservation of the public peace, health (a) In the event that this initiative measure and and safety, and general welfare. Notwithstanding any another ballot measure or measures dealing, either other provision of law, the emergency regulations directly or indirectly, with the worker classifcation, adopted by Covered California may remain in effect compensation, or benefts of app-based drivers shall for two years from the date of adoption. appear on the same statewide election ballot, the other ballot measure or measures shall be deemed to Article 11. Severability be in confict with this measure. In the event that this 7467. (a) Subject to subdivision (b), the provisions initiative measure receives a greater number of of this chapter are severable. If any portion, section, affrmative votes, the provisions of this measure shall subdivision, paragraph, clause, sentence, phrase, prevail in their entirety, and the provisions of the other word, or application of this chapter is for any reason ballot measure or measures shall be null and void. held to be invalid by a decision of any court of (b) If this initiative measure is approved by the voters competent jurisdiction, that decision shall not affect but superseded in whole or in part by any other the validity of the remaining portions of this chapter. conficting ballot measure approved by the voters at The people of the State of California hereby declare the same election, and such conficting measure is that they would have adopted this chapter and each later held invalid, this measure shall be self-executing 22 and every portion, section, subdivision, paragraph, and given full force and effect. clause, sentence, phrase, word, and application not SEC. 4. Legal Defense. declared invalid or unconstitutional without regard to whether any other portion of this chapter or The purpose of this section is to ensure that the application thereof would be subsequently declared people’s precious right of initiative cannot be invalid. improperly annulled by state politicians who refuse to defend the will of the voters. Therefore, if this act is (b) Notwithstanding subdivision (a), if any portion, approved by the voters of the State of California and section, subdivision, paragraph, clause, sentence, thereafter subjected to a legal challenge which phrase, word, or application of Section 7451 of Article attempts to limit the scope or application of this act 2 (commencing with Section 7451), as added by the in any way, or alleges this act violates any local, state, voters, is for any reason held to be invalid by a or federal law in whole or in part, and both the decision of any court of competent jurisdiction, that Governor and Attorney General refuse to defend this decision shall apply to the entirety of the remaining act, then the following actions shall be taken: provisions of this chapter, and no provision of this (a) Notwithstanding anything to the contrary chapter shall be deemed valid or given force of law. contained in Chapter 6 (commencing with Section SEC. 2. Section 17037 of the Revenue and Taxation 12500) of Part 2 of Division 3 of Title 2 of the Code is amended to read: Government Code or any other law, the Attorney 38 | Text of Proposed Laws TEXT OF PROPOSED LAWS PROPOSITION 22 CONTINUED

General shall appoint independent counsel to corporations annually earn billions of dollars from faithfully and vigorously defend this act on behalf of their dialysis operations, including more than $350 the State of California. million a year in California alone. (b) Before appointing or thereafter substituting (4) The dialysis procedure and side effects from the independent counsel, the Attorney General shall treatments present several dangers to patients, and exercise due diligence in determining the many dialysis clinics in California have been cited for qualifcations of independent counsel and shall obtain failure to maintain proper standards of care. Failure to written affrmation from independent counsel that maintain proper standards can lead to patient harm, independent counsel will faithfully and vigorously hospitalizations, and even death. defend this act. The written affrmation shall be made (5) Dialysis clinics are currently not required to publicly available upon request. maintain a doctor on site to oversee quality, ensure (c) In order to support the defense of this act in the patient plan of care is appropriately followed, and instances where the Governor and Attorney General monitor safety protocols. Patients should have access fail to do so despite the will of the voters, a continuous to a physician on site whenever dialysis treatment is appropriation is hereby made from the General Fund being provided. to the Controller, without regard to fscal years, in an (6) Dialysis treatments involve direct access to the amount necessary to cover the costs of retaining bloodstream, which puts patients at heightened risk of independent counsel to faithfully and vigorously getting dangerous infections. Proper reporting and defend this act on behalf of the State of California. transparency of infection rates encourages clinics to SEC. 5. Liberal Construction. improve quality and helps patients make the best This act shall be liberally construed in order to choice for their care. effectuate its purposes. (7) When health care facilities like hospitals and nursing homes close, California regulators are able to take steps to protect patients from harm. Likewise, PROPOSITION 23 strong protections should be provided to vulnerable This initiative measure is submitted to the people in patients when dialysis clinics close. accordance with the provisions of Section 8 of Article (8) Dialysis corporations have lobbied against efforts II of the California Constitution. to enact protections for kidney dialysis patients in This initiative measure adds sections to the Health California, spending over $100 million in 2018 and and Safety Code; therefore, new provisions proposed 2019 to infuence California voters and the to be added are printed in italic type to indicate that Legislature. they are new. (b) Purposes: (1) It is the purpose of this act to ensure that PROPOSED LAW outpatient kidney dialysis clinics provide quality and SECTION 1. Name. affordable patient care to people suffering from end- This act shall be known as the “Protect the Lives of stage renal disease. Dialysis Patients Act.” (2) This act is intended to be budget neutral for the SEC. 2. Findings and Purposes. state to implement and administer. This act, adopted by the people of the State of SEC. 3. Section 1226.7 is added to the Health and 22 California, makes the following fndings and has the Safety Code, to read: following purposes: 1226.7. (a) Chronic dialysis clinics shall provide (a) The people make the following fndings: the same quality of care to their patients without discrimination on the basis of who is responsible for (1) Kidney dialysis is a life-saving process in which paying for a patient’s treatment. Further, chronic 23 blood is removed from a person’s body, cleaned of dialysis clinics shall not refuse to offer or to provide toxins, and then returned to the patient. It must be care on the basis of who is responsible for paying for a done at least three times a week for several hours a patient’s treatment. Such prohibited discrimination session, and the patient must continue treatment for includes, but is not limited to, discrimination on the the rest of their life or until they can obtain a kidney basis that a payer is an individual patient, private transplant. entity, insurer, Medi-Cal, Medicaid, or Medicare. This (2) In California, at least 70,000 people undergo section shall also apply to a chronic dialysis clinic’s dialysis treatment. governing entity, which shall ensure that no (3) Just two multinational, for-proft corporations discrimination prohibited by this section occurs at or operate or manage nearly three-quarters of dialysis among clinics owned or operated by the governing clinics in California and treat more than 75 percent of entity. dialysis patients in the state. These two multinational (b) Defnitions: Text of Proposed Laws | 39